Can my project still be approved if the project cost estimates from the Stage 2 Alternatives Analysis change after receiving vendor responses in Stage 4 Project Readiness and Approval?

As part of the PAL funding strategy, Budget Change Proposal (BCP) requests are initiated based on the Total Project Cost estimates derived from the Stage 2 Alternatives Analysis. When the project proposal reaches Stage 4, cost estimates are reevaluated based on vendor bid responses and the selected vendor’s costs are integrated into the Agency/state entity’s Total Project Cost estimates. See Figure 1 for an illustration of the PAL Funding Strategy.

If the “Total Project Cost” in the Stage 4 Project Readiness and Approval significantly deviates from the “Total Project Cost” estimated in the Stage 2 Alternatives Analysis, the Agency/state entity may be required to take action in accordance with the following conditions.

Project Condition at Stage 4

Agency/State Entity Action

Admin Action

Result

Total Project Cost estimated in Stage 2 is greater than or equal to Total Project Cost estimated after bids are evaluated in Stage 4

No Action Necessary

Project approved based on final project cost

Award Contract

Total Project Cost estimated in Stage 2 is within 20% or $5 million (whichever is less) of Total Project Cost estimated after bids are evaluated in Stage 4